The absorption of office
space in suburban locations is expected to increase to 68 % this 2013 year
compared to 60 % in 2012, a recent survey by property consultant Jone Lang
LaSalle India has said.
With the existing commercial
business districts saturating, firms planning to expand their operations in the
next 5 years may prefer to shift to suburban locations, the survey also said.
Highlights of JLL India
Report..!.
** Suburban
locations are home to the majority of office real estate occupiers and will
have a growing role in determining the performance of India's office market.
** By shifting to these location, they will be able to
reduce their real estate costs and move into superior quality projects, which
are available at lower rents & offer modern amenities, car parking &
safety.
** Last year, the absorption of office space in India
totalled to 26.7 million square feet, out of which, suburban locations
accounted for more than 60% or / 16.6 million square feet.
** This absorption in the suburban locations is expected
to increase further to 68% or 19.2 million square feet in 2013. These growing
real estate activities in suburban locations of India provide evidence of a
shift in gravity towards this market.
** The banking, financial services and insurance (BFSI)
sector currently dominates the CBD market due to its willingness to pay higher
rents, whereas IT / ITeS occupiers dominate the suburban market in terms of
occupancy due to the availability of larger office space areas and also because
the nature of their business makes them vulnerable to higher real estate
overhead costs.
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